Where does it all go?

A TAX statement sent annually to every worker under a new plan will spell out
WHERE each hard-earned Pound taken off them is spent.

The breakdown — individually tailored just like a bank statement — is being
considered by the Treasury, The Sun can reveal.

It would mean for the first time every worker can see precisely where THEIR
particular contribution to Government coffers is splurged.

Many will be shocked at how much of their tax money goes on areas such as
benefits handouts, according to senior Conservatives who reckon the
statements will boost support for cutting bloated state spending.

The Sun has crunched the figures for people on typical incomes — and come up
with a simulated statement.

It shows someone earning the annual average of £26,000 pays £6,134 in income
tax and national insurance.

Out of that sum a THIRD — £2,135 — goes on handouts and pensions.
Housing benefit costs £226, while £412 goes on dole money, tax credits and
child allowance — with sickness and disability benefits swallowing £309.

The second largest chunk of everyone’s tax bill goes to the NHS. For the
average earner, that means £1,109 of everything they took home in the last
tax year.

Next comes education, which swallows £835 — £599 of it for schools.

A fact that may surprise many is that only £335 goes on the nation’s Armed
Forces and nuclear defence — and just £159 on the police.

Overseas aid — which is controversially due to keep increasing — gets £60.

Extra taxes — ranging from VAT and Council Tax to little know Wine and Fresh
Grapes duties — clobber everyone over 18 for ANOTHER £2,737.

Mr Gummer reckons the statements will force ministers not to waste tax money.

And at election time, political parties would be encouraged to draw up similar
statements showing just how voters will be hit in the pockets.